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In recent years the health cost curve has registered drastic changes. The gradual rise and the fall of the cost curve is as a result of the direct and indirect changes taking place in the healthcare sector. The invention of new healthcare models to include new pharmaceutical drugs and implementation of health reforms are factors that have caused a shift in the healthcare cost curve (Chandra, et al., 2013). Also, factors to include quality can cause a shift in the cost curve.  The health industry is ever-evolving and the developments taking place in this sector have attracted higher costs that are distributed in the industry (Chandra, et al., 2013).  In the healthcare sector in the US, there are many expensive drugs and the government is currently focused on controlling the cost of these drugs that have caused a rise in the cost curve. Healthcare reforms are being implemented with a focus on improving customers experience, these reforms improve the health of individuals and positively impact the consumers, these reforms are expensive and cause a rise in the cost curve (Chandra, et al., 2013). Quality is another factor that can cause a rise in the cost curve, for example, to ensure the quality of medication offered in-depth and further examination into one’s medical condition is required, quality will require a high cost thus raising the cost curve.

 In the healthcare industry, there are major healthcare providers that have the power to influence the supply of healthcare in the US. Different healthcare providers mostly in the private sector can determine at what prices US citizens access quality medical care (American Hospital Association, 2019). The federal and state government in conjunction with nonprofit organizations have tried to counteract the power profit organizations have to influence the supply of medical care, however, they do not have enough hospitals.  Insurance firms also try to control the supply of healthcare (American Hospital Association, 2019). For example, an attempt by the government to influence the prices of pharmaceutical products with a focus on controlling supply might fail as a result of the bargaining that takes place between the drug companies and profit hospitals.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

References

American Hospital Association. (2019). “3 Ways to Adopt the Attributes of High-Value   Hospitals.” Retrieved from; https://www.aha.org/aha-center-health-innovation- market-scan/2019-02-11-3-ways-adopt-attributes-high-value-hospitals

Chandra, A., Holmes, J., & Skinner, J. (2013). Is this time different? The slowdown in healthcare             spending (No. w19700). National Bureau of Economic Research.